Medical equipment financing
Demand for up-to-date medical equipment is soaring across the heath sector to keep pace with technological change and provide patients with the best and most up-to-date of care, creating growing interest in medical equipment financing.
However, the purchase of medical equipment involves high capital costs, while the equipment itself suffers from a high degree of obsolescence – resulting in the regular and costly need for upgrading.
Many hospital trusts have also been affected by the austerity measures the Government has introduced, restricting their ability to purchase the latest equipment outright.
As a result, the use of finance to acquire medical equipment is growing in popularity in health sector procurement, and can bring significant financial benefits compared to traditional purchase methods.
For more and more medical equipment suppliers, financing is perfectly acceptable means of supplying the very latest equipment to healthcare providers. And for many medical establishments, equipment financing eliminates the need to accumulate sufficient capital budgets to acquire the medical equipment outright.
Benefits of medical equipment financing
At Maxxia, we can arrange financing for a wide range of medical equipment which is ideal for those healthcare institutions looking to expand or replace current equipment with newer versions.
Medical equipment financing offers considerable advantages over outright purchase, particularly around budgeting and cash flow management.
Many healthcare facilities are opting for financing due to the lower total cost of ownership, and the tax benefits available when compared to the outright purchase. Medical equipment financing is also gaining in prominence due to the relative ease of securing leasing agreements.
Through equipment leasing, medical organisations can avoid locking-in capital into new equipment purchases.
What are the advantages of medical equipment financing?
- An alternative funding option to up-front capital investment
- Facilitates the procurement of new/replacement equipment and the latest technology
- Assets can be financed over various lease or hire periods related to the equipment’s economical life
- Assets can be funded from either the revenue budget (operating lease) or capital budget (finance lease) dictated by the organisation’s requirements
- Equipment upgrades can be facilitated and the lease/hire arrangement amended to give equipment a longer life
Why is financing the best option for medical equipment?
If your organisation requires investment in certain asset classes, such as medical equipment and technology, financing, rather than buying, these assets may be the best option.
Spreading the cost of medical equipment over a set period with asset financing will have less of an impact on capital whilst still providing the latest equipment you require.